Shares in ASML surged to a record high on Thursday, lifting the Dutch chipmaking equipment maker’s market capitalisation above $500 billion and reinforcing its position as Europe’s most valuable listed company.

The stock jumped about 5% in early trade, reaching an all-time peak of 1,167 euros, after strong earnings from Taiwan Semiconductor Manufacturing Co (TSMC) triggered a rally across European semiconductor stocks.

As of 0858 GMT, ASML’s market value stood at around 443 billion euros ($515 billion), reflecting investor optimism about sustained demand for advanced chipmaking tools amid the global boom in artificial intelligence and high-performance computing.

ASML is the world’s sole supplier of extreme ultraviolet (EUV) lithography machines, a critical technology for producing leading-edge semiconductors used by companies such as TSMC, Intel and Samsung Electronics.

TSMC reported a 35% jump in quarterly profit earlier on Thursday and said it would raise capital spending sharply this year to meet strong demand for advanced chips, boosting sentiment across the semiconductor supply chain.

European chip stocks broadly gained following TSMC’s results, with investors betting that strong foundry demand would translate into higher orders for equipment suppliers such as ASML.

($1 = 0.86 euros)